Valens GroWorks (TSXV: VGW) announced this morning that it has received a sales license from Health Canada, allowing it to sell its oil products directly to provincial distributors and regulators. Previously, Valens was only authorized for business to business sales.
The additional license removes a major roadblock for the extraction firm. Previously, Valens would have to acquire product from a licensed producer, extract it, and then resell it back to the producer in order to obtain revenues. It added an unnecessary step for its white label product program. With the additional license, it smooths out operations for the firm and its white label clients.
Valens also updated the market this morning in regards to its white label product facility, which is on a path to completion for the first half of 2020. The firm currently has substantial extraction and white label capacity, but the additional facility will allow Valens to extract up to 1,000,000 KG of cannabis and hemp biomass on an annual basis. The addition will also allow the firm to focus further on product development and manufacturing of additional value-added concentrate products.
We will be expanding our offerings to our customers to also include customized formulations, emulsion, terpene enhancement, and centrifugal partition chromatography that will allow our customers to target specific desired cannabinoids as the market offerings mature, such as CBG, THCV or CBN, as well as separate out unwanted contaminants in oil including pesticides and microbials.
Tyler Robson, CEO of Valens
The news follows the announcement earlier this month that Valens GroWorks had signed a five-year white label beverage deal with Iconic Brewing Co. The firm is a traditional alcohol beverage producer whom is centered on entering the cannabis beverage niche.
Valens GroWorks closed Friday’s session at $3.97 per share on the TSX Venture Exchange.
Information for this briefing was found via Sedar and Valens GroWorks. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
